CHAPTER 1 1.

1 COMPANY PROFILE Indian Overseas Bank (IOB; established 1937) is a major bank based in Chennai (Madras), with 2018 domestic branches and six branches overseas. Indian Overseas Bank has an ISO certified inhouse Information Technology department, which has developed the software that 2018 branches use to provide online banking to customers; the bank has achieved 100% networking status as well as 100% CBS status of branches with a total number of 2018 CBS branchs and Extension Counters. IOB also has a network of about 771 ATMs all over India and IOB's International VISA Debit Card is accepted at all ATMs belonging to the Cash Tree and NFS networks. IOB offers internet Banking (E-See Banking) and is one of the banks that the Govt. of India has approved for online payment of taxes.

1.1.1 HISTORY OF INDIAN OVERSEAS BANK

1937: Shri.M.Ct.M. Chidambaram Chettyar establishes the Indian Overseas Bank (IOB) to encourage overseas banking and foreign exchange operations. IOB started up simultaneously at three branches, one each in Karaikudi, Madras (Chennai) and Rangoon (Yangon). It then quickly opened a branch in Penang and another in Singapore. The bank served the Nattukottai Chettiars, who were a mercantile class that at the time had spread from Chettinad in Tamil Nadu state to Ceylon (Sri Lanka), Burma (Myanmar), Malaya, Singapore, Java, Sumatra, and Saigon. As a result, from the beginning IOB specialized in foreign exchange and overseas banking (see below). y 1960s: The banking sector in India was consolidating by the merger of weak private sector banks with the stronger ones; IOB absorbed five banks, including Kulitali Bank (est. 1933). y 1969: The Government of India nationalized IOB. At one point, probably before nationalization, IOB had twenty of its eighty branches located overseas. After

nationalization it, like all the nationalized banks, turned inward, emphasizing the opening of branches in rural India. y y 1988-89: IOB acquired Bank of Tamil Nadu in a rescue. 2000: IOB engaged in an initial public offering (IPO) that brought the government's share in the bank's equity down to 75%. y 2009: IOB took over Shree Suvarna Sahakari Bank, which was founded in 1969 and had its head office in Pune. In 2001 it acquired the Mumbai-based Adarsha Janata Sahakari Bank, which gave it a branch in Mumbai. Shree Suvarna Sahakari Bank has been in administration since 2006. It has nine branches in Pune, two in Mumbai and one in Shirpur. The total employee strength is estimated to be little over 100.

1.1.2 OBJECTIVES OF IOB

IOB's overall objective is to meet the need for independent evaluation in all fields of foreign policy. Specifically, the aim is to fit the results of the evaluations into the knowledge cycle of the Ministry of Foreign Affairs. The reports of the evaluations are used as feedback to improve both policies and their implementation. With the results of previous exercises at their disposal, policymakers can prepare new interventions more purposefully and more effectively.

2.2.3 QUALITY AND INDEPENDENCE

Parliament has always shown great interest in IOB's independent reports. On the basis of the reports sent to the Lower House, the minister gives a policy response. The Permanent Committee on Foreign Affairs then discusses the report and the policy response. The evaluation results are public and are used, for instance, by universities in their teaching.

2.2.4 APPROACH AND METHODOLOGY

IOB has a staff of specialists and its own budget. Given the growing complexity of policies and interventions, a multidisciplinary approach is required. This calls for evaluation expertise as well as specialist expertise in a large number of fields. For this reason IOB uses external consultants and specialists, whenever possible from the countries with which the Netherlands cooperates. This fits in with the policy of flexibilization and professionalization which IOB aspires to. For internal quality control, IOB uses reference groups of involved parties and external experts.

In order to compare evaluations, relevant studies are 'clustered' by policy theme. This makes it possible to draw main conclusions for policy making on the basis of a series of studies. This generates an important synergy effect, so that greater attention can be paid to the spearheads of policy: poverty reduction within development cooperation, "good governance" (i.e. the functioning of public authorities and civil society organizations in the countries concerned), issues of international order and the promotion of Dutch interests abroad.

2.2.5 MAJOR SHIFTS

Since IOB was set up in 1977, major shifts have taken place in its approach, areas of attention and responsibilities. In the early years, IOB's activities consisted mainly of separate project evaluations. Around 1985, the focus shifted to the sector and theme levels, and now its work is conducted on the basis of clustered evaluations.

In 1996, there was a review of Dutch foreign policy and the Ministry of Foreign Affairs was reorganized. As part of the review, the name of the department was changed from

. (Indian Bank had been operating in Malaysia since 1941 and United Commercial Bank Limited had been operating there since 1948. 2.Operations Review Unit (IOV) to IOB. 1963: The Burmese government nationalized IOB¶s branch in Rangoon. IOB and six Indian private banks established Bharat Overseas Bank as a Chennai-based private bank to take over IOB's Bangkok branch y y y 1977: IOB opened a branch in Seoul. Also. a Malaysian bank. in which development cooperation plays an important role. acquired United Asian Bank (UAB). y y y y y y 1946: IOB opened a branch in Ceylon.) The banks set up United Asian to comply with the Banking Law in Malaysia. which prohibited foreign government banks from operating in the country.2. 1947: IOB opened a branch in Bangkok and re-opened others. Sri Lanka. Indian Bank and United Commercial Bank established United Asian Bank Berhad in Malaysia. 1973: IOB. y 2007: IOB took over Bharat Overseas Bank. 1992: Bank of Commerce (BOC). and Singapore. and its sphere of activities was extended to cover all aspects of the Dutch government's foreign policy. IOB was international from its inception with branches in Rangoon. 1949: IOB opened a branch in Bangkok. 1948: United Commercial Bank (see below) opened a branch in Malaya. y 1941: IOB opened a branch in Malaya that presumably closed almost immediately because of the war.6 INTERNATIONAL EXPANSION y 1937-38: As mentioned above. Penang. 1979: IOB opened a Foreign Currency Banking Unit in Colombo.

5 billion in 2009 to US$ 4. 5. as per the Brand Finance study. which has a large population of Indians.8 per cent.y 2010: Malaysia awarded a commercial banking license to a locally incorporated bank to be jointly owned by Bank of Baroda.8 per cent.0 per cent. loan disbursement from scheduled commercial banks which included regional rural banks as well posted a growth of 16. ICICI Bank also made it to the Top 100 list with a brand value of US$ 2. while State Bank of India (SBI) and its associates accounted for 23. Following the financial crisis. The new bank. Bank of Baroda will own 40% and IOB the remaining 35% 2. .5 per cent of the aggregate deposits. respectively. the RBI has the tenth largest gold reserves in the world after spending US$ 6.6 per cent and 3. according to a stress test done by the Reserve Bank of India (RBI). the State Bank of India (SBI) has become the first Indian bank to be ranked among the Top 50 banks in the world. Meanwhile. Indian Overseas Bank and Andhra Bank. 20 Indian banks have been included in the Brand Finance® Global Banking 500. on a year-onyear basis. The purchase has increased the country's share of gold holdings in its foreign exchange reserves from approximately 4 per cent to about 6 per cent. as per the latest data released by RBI. Andhra Bank will hold a 25% stake in the joint-venture.6 billion in 2010. nationalised banks. According to RBI's 'Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks: September 2009'. India BIA Bank (Malaysia). The RBI had earlier predicted that the credit growth during 2009-10 would be around 16 per cent. Significantly.2 billion. accounted for 50. In fact. The total brand value of the 20 Indian banks featured in the list stood at US$ 13 billion. foreign banks and regional rural banks in aggregate deposits were 17. In the annual international ranking conducted by UK-based Brand Finance Plc. 2010. new deposits have gravitated towards public sector banks. will reside in Kuala Lumpur.04 per cent by March 12. The brand value of SBI increased from US$ 1.1 INDUSTRIAL PROFILE The Indian banking system is financially stable and resilient to the shocks that may arise due to higher non-performing assets (NPAs) and the global economic crisis. as a group. capturing the 36th rank.7 billion towards the purchase of 200 metric tonnes of gold from the International Monetary Fund (IMF) in November 2009. The share of other scheduled commercial banks.

5 per cent and 2.095 were single office centres and 64 centres had 100 or more bank offices. as a group.8 per . The total brand value of the 20 Indian banks featured in the list stood at US$ 13 billion. Of these centres. ICICI Bank also made it to the Top 100 list with a brand value of US$ 2. accounted for 50.709 banked centres. loan disbursement from scheduled commercial banks which included regional rural banks as well posted a growth of 16. as per the Brand Finance study.5 per cent of the aggregate deposits.6 billion in 2010.7 per cent and other scheduled commercial banks at 17. In fact. nationalised banks. Meanwhile. on a year-onyear basis. In the annual international ranking conducted by UK-based Brand Finance Plc. according to a stress test done by the Reserve Bank of India (RBI). capturing the 36th rank.2 billion. The confidence of non-resident Indians (NRIs) in the Indian economy is reviving again. Following the financial crisis. the State Bank of India (SBI) has become the first Indian bank to be ranked among the Top 50 banks in the world. The purchase has increased the country's share of gold holdings in its foreign exchange reserves from approximately 4 per cent to about 6 per cent.5 billion in 2009 to US$ 4. Foreign banks and regional rural banks had a share of 5. 20 Indian banks have been included in the Brand Finance® Global Banking 500.5 per cent in the total bank credit. According to RBI's 'Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks: September 2009'. new deposits have gravitated towards public sector banks. The Indian banking system is financially stable and resilient to the shocks that may arise due to higher non-performing assets (NPAs) and the global economic crisis. the RBI has the tenth largest gold reserves in the world after spending US$ 6. 28. with SBI and its associates at 23. nationalised banks hold the highest share of 50. The RBI had earlier predicted that the credit growth during 2009-10 would be around 16 per cent. as per the latest data released by RBI.5 per cent respectively in the total bank credit.04 per cent by March 12.With respect to gross bank credit also. The brand value of SBI increased from US$ 1. while State Bank of India (SBI) and its associates accounted for 23. Significantly.8 per cent. The report also found that scheduled commercial banks served 34.7 billion towards the purchase of 200 metric tonnes of gold from the International Monetary Fund (IMF) in November 2009. 2010.

095 were single office centres and 64 centres had 100 or more bank officesNRI fund inflows increased since April 2009 and touched US$ 47. as compared to US$ 891 million in 2008.0 per cent. 2. Most of this has come through Foreign Currency Non-resident (FCNR) accounts and Non-resident External Rupee Accounts. Currently. respectively. The report also found that scheduled commercial banks served 34. nationalised banks hold the highest share of 50.8 per cent. The share of other scheduled commercial banks. With respect to gross bank credit also. only SBI had QFB privileges in country. .1. The bank is also planning to increase its share in the international business operations to 7 per cent in the next three years.1 MAJOR DEVELOPMENTS The Monetary Authority of Singapore (MAS) has provided qualified full banking (QFB) privileges to ICICI Bank for its branch operations in Singapore. 5. Of these centres.6 per cent and 3. The bank posted a profit before tax (PAT) of US$ 1. foreign banks and regional rural banks in aggregate deposits were 17.cent.8 per cent.5 per cent in the total bank credit.709 banked centres. as per the RBI's June 2010 bulletin. with SBI and its associates at 23. 28. Foreign banks and regional rural banks had a share of 5.7 per cent and other scheduled commercial banks at 17.5 per cent respectively in the total bank credit.8 billion on March 2010. Punjab National Bank (PNB) plans to expand its international operations by foraying into Indonesia and South Africa. The Indian operations of Standard Chartered reported a profit of above US$ 1 billion for the first time.06 billion in the calendar year 2009.5 per cent and 2.

.2. Number of banks are in brackets.2 BANKING IN INDIA Structure of the organised banking sector in India.1.

The oldest bank in existence in India is the State Bank of India. which.3 HISTORY Banking in India originated in the last decades of the 18th century. but it failed in 1848 as a consequence of the economic crisis of 1848-49. is the oldest Joint Stock bank in India. the other two being the Bank of Bombay and the Bank of Madras. as did their successors. and which survived until 1913.000 ATMs. the public sector banks hold over 75 percent of total assets of the banking industry. That honor belongs to the Bank of Upper India. became the State Bank of India.1. This was one of the three presidency banks. upon India's independence. The three banks merged in 1921 to form the Imperial Bank of India. According to a report by ICRA Limited. all three of which were established under charters from the British East India Company. The first banks were The General Bank of India which started in 1786. When the American Civil War stopped the supply of cotton to Lancashire from the Confederate States. For many years the Presidency banks acted as quasi-central banks. 2. which originated in the Bank of Calcutta in June 1806. Indian merchants in Calcutta established the Union Bank in 1839. which almost immediately became the Bank of Bengal. with some of its assets and liabilities being transferred to the Alliance Bank of Simla. India has 96 scheduled commercial banks (SCBs) . With large .000 branches and 49. and the Bank of Hindustan. they may be publicly listed and traded on stock exchanges) and 38 foreign banks.5% respectively.(Joint Stock Bank: A company that issues stock and requires shareholders to be held liable for the company's debt) It was not the first though. They have a combined network of over 53.2% and 6. 31 private banks (these do not have government stake. The Allahabad Bank. with the private and foreign banks holding 18. established in 1865 and still functioning today. which was established in 1863. when it failed.27 public sector banks (that is with the Government of India holding a stake).Currently. promoters opened banks to finance trading in Indian cotton. both of which are now defunct. a rating agency.

The period between 1906 and 1911. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. The exchange banks. The Bank of Bengal. Around five decades had elapsed since the Indian Mutiny. industrial and other infrastructure had improved. mainly due to the trade of the British Empire. established in Lahore in 1895. Corporation Bank. then a French colony. most of which served particular ethnic and religious communities. Around the turn of the 20th Century. It failed in 1958. which has survived to the present and is now one of the largest banks in India. . particularly in Calcutta. Subsequently. Indian Bank. which later merged with the Bank of Bombay and the Bank of Madras to form the Imperial Bank of India in 1921. All these banks operated in different segments of the economy. and the social. branches in Madras and Pondichery. and another in Bombay in 1862. The Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860. established in 1881 in Faizabad. concentrated on financing foreign trade. The presidency banks dominated banking in India but there were also some exchange banks and a number of Indian joint stock banks. A number of banks established then have survived to the present such as Bank of India. Indian joint stock banks were generally under capitalized and lacked the experience and maturity to compete with the presidency and exchange banks. the Indian economy was passing through a relative period of stability. Bank of Baroda. Indians had established small banks. banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century. most of the banks opened in India during that period failed. The first entirely Indian joint stock bank was the Oudh Commercial Bank. The next was the Punjab National Bank.exposure to speculative ventures. HSBC established itself in Bengal in 1869. followed. and so became a banking center. saw the establishment of banks inspired by the Swadeshi movement. Canara Bank and Central Bank of India. mostly owned by Europeans. in the 1860s. The depositors lost money and lost interest in keeping deposits with banks. Calcutta was the most active trading port in India. Foreign banks too started to arrive.

paralyzing banking activities for months. . Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking". the Reserve Bank of India. and it became an institution owned by the Government of India. This resulted into greater involvement of the state in different segments of the economy including banking and finance. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The major steps to regulate banking included: y In 1948. and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. At least 94 banks in India failed between 1913 and 1918 as indicated in the following table: YEARS NUMBER OF BANKS THAT FAILED 1913 1914 1915 1916 1917 1918 12 42 11 13 9 7 274 710 56 231 76 209 35 109 5 4 25 1 AUTHORISED CAPITAL PAID UP CAPITAL The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal. was nationalized.The fervour of Swadeshi movement lead to establishing of many private banks in Dakshina Kannada and Udupi district which were unified earlier and known by the name South Canara ( South Kanara ) district. India's central banking authority. The Government of India initiated measures to play an active role in the economic life of the nation. Four nationalised banks started in this district and also a leading private sector bank.

At the same time.y In 1949. control and regulations. Jayaprakash Narayan. thethen Prime Minister of India expressed the intention of the GOI in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalisation. a national leader of India. continued to be owned and operated by private persons." Within two weeks of the issue of the ordinance." y The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI. and the GOI issued an ordinance and nationalised the 14 largest commercial banks with effect from the midnight of July 19. and inspect the banks in India. the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate. Indira Gandhi. Thereafter. 2. and no two banks could have common directors. and it received the presidential approval on 9 August 1969. Later on. in the year 1993. However. 1969. The stated reason for the nationalization was to give the government more control of credit delivery. A second dose of nationalization of 6 more commercial banks followed in 1980. banks in India except the State Bank of India. despite these provisions. This changed with the nationalisation of major banks in India on 19 July 1969. 1949 in terms of the Reserve Bank of India By the 1960s. her move was swift and sudden. the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill.1. and a debate had ensued about the possibility to nationalise the banking industry. the government merged New Bank of India with Punjab . the GOI controlled around 91% of the banking business of India. the Indian banking industry had become an important tool to facilitate the development of the Indian economy.4 NATIONALISATION The RBI was nationalized on January 1. With the second dose of nationalization. it had emerged as a large employer." The paper was received with positive enthusiasm. control. described the step as a "masterstroke of political sagacity.

the nationalised banks grew at a pace of around 4%.at present it has gone up to 74% with some restrictions.Go home at 4) of functioning.National Bank.1. and included Global Trust Bank (the first of such new generation banks to be set up). private banks and foreign banks. People not just demanded more from their banks but also received more. along with the rapid growth in the economy of India. product range and reach-even though reach in rural India still remains a challenge for the private sector . After this. Bankers.5 LIBERALISATION In the early 1990s. until the 1990s. licensing a small number of private banks. It was the only merger between nationalized banks and resulted in the reduction of the number of nationalised banks from 20 to 19. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. which has seen rapid growth with strong contribution from all the three sectors of banks.Lend at 6%. This move. The next stage for the Indian banking has been set up with the proposed relaxation in the norms for Foreign Direct Investment. These came to be known as New Generation tech-savvy banks.All this led to the retail boom in India. closer to the average growth rate of the Indian economy 2. banking in India is generally fairly mature in terms of supply. were used to the 4-6-4 method (Borrow at 4%. government banks. where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%. till this time. Currently (2007). which later amalgamated with Oriental Bank of Commerce Axis Bank(earlier as UTI Bank). the then Narsimha Rao government embarked on a policy of liberalization. The new policy shook the Banking sector in India completely. ICICI Bank and HDFC Bank. namely. revitalized the banking sector in India.

6 VISION OF BANKS IN INDIA The banking scenario in India has already gained all the momentum. Post the banking reforms. takeovers. The Reserve Bank of India is an autonomous body. With the growth in the Indian economy expected to be strong for quite some timeespecially in its services sector-the demand for banking services.and foreign banks. The focus of all banks in India has shifted their approach to 'cost'. the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. In terms of quality of assets and capital adequacy. strong and transparent balance sheets relative to other banks in comparable economies in its region. which meant that banks aimed at higher profit maximization . In recent years critics have charged that the non-government owned banks are too aggressive in their loan recovery efforts in connection with housing. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true. mortgages and investment services are expected to be strong. To survive in the long run. with the domestic and international banks gathering pace. Indian banks are considered to have clean. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them. banks shifted their approach to the 'profit' model. 2.1. Previously. This means that all the resources should be used efficiently to better the productivity and ensure a win-win situation. vehicle and personal loans. There are press reports that the banks' loan recovery efforts have driven defaulting borrowers to suicide. especially retail banking. banks focused on the 'revenue' model which is equal to cost plus profit. In March 2006. determined by revenue minus profit. it is essential to focus on cost saving. with minimal pressure from the government. One may also expect M&As. and asset sales.

Bank assets are expected to grow at an annual composite rate of 13.7 per cent that existed between 1994-95 and 2002-03. Scheduled banks constitute of commercial banks and co-operative banks. People will rely more on borrowed funds. That will comprise about 65 per cent of GDP at current market prices as compared to 67 per cent in 2002-03.4 per cent during the rest of the decade as against the growth rate of 16.000 . There are about 67. the report forecasts that the pace of expansion in the balance-sheets of banks is likely to decelerate.8 INDIAN BANKING INDUSTRY The growth in the Indian Banking Industry has been more qualitative than quantitative and it is expected to remain the same in the coming years. advances and investments would not see a healthy growth rate.1. on the liability perspective. It is expected that there will be large additions to the capital base and reserves on the liability side.000 crore. 2.1.90.4% during the rest of the decadeasagainst16. The total assets of all scheduled commercial banks by end-March 2010 is estimated at Rs 40.90. Based on the projections made in the "India Vision 2020" prepared by the Planning Commission and the Draft 10th Plan. there will be huge additions to the capital base and reserves. The total assets of all scheduled commercial banks by end-March 2010 is projected to touch Rs 40. This is going to comprise around 65% of GDP at current market prices as compared to 67% in 2002-03. The bank's assets are estimated to grow at an annual composite rate of growth of 13.7%between1994-95and2002-03.7 FOCUS OF BANKS IN INDIA The banking industry is slated for growth in future with a more qualitative rather than quantitative approach.2. However. pace of deposit growth slowing down side by side.000 crores. The Indian Banking Industry can be categorized into non-scheduled banks and scheduled banks. Barring the asset side.

In the Indian Banking Industry some of the Private Sector Banks operating are IDBI Bank. and banks from the Public Sector include Punjab National bank. mobile banking. Bank of Rajasthan Ltd. Oriental Bank. The Public Sector Banks(PSBs). As far as foreign banks are concerned they are likely to succeed in the IndianBankingIndustry.1 ORGANISATION STRUCTURE OF IOB . As far as the present scenario is concerned the Banking Industry in India is going through transitionalphase. ATMs. which are the base of the Banking sector in India account for more than 78 per cent of the total banking industry assets. ING Vyasa Bank. ANZ Grindlays Bank. 3. SBI Commercial and International Bank Ltd. American Express Bank Ltd. On the other hand the Private Sector Banks are making tremendous progress. They are leaders in Internet banking. Unfortunately they are burdened with excessive Non Performing assets (NPAs). UCO Bank. Vijaya Bank. Citibank are some of the foreign banks operating in the Indian Banking Industry. phone banking. ABN-AMRO Bank.branches of Scheduled banks spread across India. Allahabad Bank among others. massive manpower and lack of modern technology.

Chief Manager Senior manager Manager Assistant manager Clerks Award staffs Punes Sweeper Attender .

3. 1) CASHIER SECTION In this cashier section there are two different types of sections available such as: y Main cash y Teller cash Cashier section Main cash Chief cashier Teller cash Sub cashier .2 SECTIONS IN IOB In this iob Virugambakkam branch there are various sections available they are: y y y y Cashier section Advance section /loan section Deposit section Account opening & operating section Let us see a brief description about all these sections below.

The salary paid to him is rupees 38.000. He/she will be having a separate ledger called as the general ledger in which the whole day transactions will be entered and by 4pm in evening the ledger must be tallied and sent to the central bank.000. It starts from the minimum of rupees 50 and it goes on. The salary paid to him is rupees 34. MAIN CASH The customers or the common people can pay and drop money only if it is above rupees 15. This person is responsible for all the monetary transaction which takes place every day in the bank. TELLER CASH In this teller cash the customer and the common people can pay and drop money at any cost.000. A normal ledger will be prepared by the sub cashier and then it will be passed on to the chief cashier with which they prepare the general ledger. This normal ledger must be passed on to the chief cashier on or before 2pm. 2.000 only. and it can go till rupees 50.000. But the minimum amount should start from rupees 15. This teller cash section is located next to the main cash section. 00. A separate cashier is allocated for this section that is called as the chief cashier. 2) ADVANCE / LOAN SECTION In this advance section the bank provide up with different types of loans such as: y y Jewel loan Educational loan .1. A separate cashier is allocated for this section who is called as the sub cashier.

The main procedure is that with in one year they have to pay the interest amount. The people can get the maximum of rupees 10 lacks and the minimum of rupees 10 thousand with the jewel. The rate of interest is of 12% per annum. a jewel appraiser is appointed by the government who is a licence holder. His duty is to check the jewel whether it is good or not.y y y Housing loan Cash credit loan Pension loan Loan section Jewel loan Educational loan Housing loan Pensioner s loan 1. This is done because if they are not able to retain there jewel then the bank will take the jewel in to action (yallam). And also that within 3yrs they have to pay the principle amount and take the jewel back or else they will take the jewel in to action. EDUCATIONAL LOAN The educational loan is been provided for the welfare of the students. JEWEL LOAN Here. The bank is providing rupees 900 per gram. . which is a lesser amount from the original value. 2. In this iob Virugambakkam branch they are allocating rupees 1 crores for education.

.The main thing is that the interest must be paid during the study time and after the study is over the principle amount must be paid. The property should be valued more than the amount which is been claimed. 60 months. HOUSING LOAN The housing loan will be provided only for the flat and not for the plots. But when it is compared with the abroad study then the collateral security is needed which should valued more than the money which is been gained.    Salary slip must be submitted. If there is a building structure only the bank is providing with the loan amount. If suppose the student locates within the city or state then there is no need for the collateral security only the guarantor who gives guarantee for the student and the student guarantee is enough.Requirements:  A bonafied certificate from the college. 40 months. Income tax (3 yrs) original copy. etc.  The collateral security i.). Parent document. The bank itself provide the money at which source does the educational institution needed. Requirements:  Original document of the person who is claiming for the loan. property details etc. But the interval may vary such as the period of 24 months.e. . (document. 3. the maximum amount which can be gained is rupees 15 lacks. The rate of interest is of 12% per annum.

   Encomprence certificate (ec) ± 30 yrs about the property. And if the loan extended to 15 years then the rate of interest is 12. And also the panel engineer who estimates about the value of the property.The housing loan can be claimed only when two guarantor or any two persons must give the surety for the person who is claiming the loan amount. Patta. The pension amount will be credited to the retired persons account. If the loan is for 5 years then the rate of interest is 10%. 4. If the loan is for 10 years then the rate of interest is 11%. PENSIONERS LOAN This is been given only for the retired person.5%. then that must be registered. There are different time intervals for the repayment of the loan amount and the rate of interest will vary accordingly to that. The amount which is issued by the bank will be 85% of the market value of that property.5% per annum. The bank is providing a panel lawyer where he/she is appointed by the government. The interest rate is 12.whether it comes under government survey Cmda plan approved Contribution agreement ± if suppose any terms and conditions is there. . The duty of them is to check whether this amount of loan can be provided for that land. If suppose any medical expenses or any urgent domestic purposes occurred and if they are in need of money means then they will provide up with the loan based on the pension amount that too only 50% of the pension amount can be gained and it is only for 6 months of validity.

Short term deposit.If the person who is getting the loan is a retired person from the same organisation (iob) then he/she will be getting 60% of the pension amount can be gained and it is only for 6 months of validity. Sfdq. Recurring deposit. Nri deposit. They are:       Fixed deposit. at regular intervals. So that the bank will provide them with some interest by calculating there principal amount. . 3) DEPOSITS SECTION Deposit section is nothing but that the customers or the common people will provide the bank with money in the name of deposits. These are the various sections in this deposit section. Sfdm.

75%  First year till second year the rate of interest would be same such as 6.Deposits section Fixed deposit Short term deposit Recurring deposit Sfdm Sfdq Nri deposit 1. One condition is that the deposit should not be closed. The rate of interest varies accordingly to that . They will be providing up with the 85% of the deposit amount as the loan amount. But it can be only minimum amount based on the fixed deposit. 2 year and the maximum number of years the deposit can be maintained is for 5 years. the rate of interest differs accordingly to number of years. that is 1 year.75% . FIXED DEPOSIT The customer and also the common people can deposit a fixed amount which ranges from the minimum amount of rupees 5000 and a maximum amount as it goes on. Here.In this deposits the customers and also the other common people who gets the benefit in the way.  First year means the rate of interest would be 6. that they can get loan if they are in need of it from their fixed amount. The period of maintaining deposit in the bank also varies.

.75% extra. till 5 years. the rate of interest given for this recurring deposit is 6.5%. 24 months. The period of this deposit is for minimum of 7 days and a maximum of 181 days.. From second year till fifth year the rate of interest would be 7% If suppose they are of a senior citizen then for such type of people the rate of interest will be 0.. Such as marriage. The main thing is that if the person is retired from the same bank where he/she has deposited and also if they come under the category of senior citizen then they will be getting the double benefit.75% extra. education etc. So that they will be getting 6.75% and for the senior citizens the bank provides 0. The time period varies in the form of 6 months.25%. This type of recurring deposit is mainly done for the future use. 12 months. The minimum amount which can be deposited each month is rupees 50 and the maximum amount as it goes on. 3. So that the right data¶s must be entered in the system for their future references. The rate of interest calculated for them is 5. If it is a senior citizen then for them 0. 2. SHORT TERM DEPOSIT Here in this short term deposit the customers or even any common people can make deposits in the bank. The minimum amount which can be deposited is rupees 5000 and the maximum amount as it goes on and also that if they are retired person from the bank and then they will be getting 1% extra.75% extra. RECURRING DEPOSIT In this recurring deposit a separate account is been opened and the people will start to do their deposits. For each and every year they have to reneuve the deposit.

NRI DEPOSIT . It is given mainly for the retired persons. If it is a senior citizen then at any cost they will be providing them with 0. In this scheme they will be putting the deposit amount according to the terms and conditions of the bank. The main thing is that when they want to retrieve there deposit then they will be paid up with in there full principle amount.short fixed deposit monthly. it simply says that the people who are without income will be gaining this benefit. SFDM Sfdm . In this scheme. This type of scheme will be mainly chosen by the retired persons. Here also they will be depositing the amount and will gain income out of it for every three months.75% extra. They will be getting the pension amount as a whole sum from the bank or any organisation and then they will deposit the amount in the bank and make themselves comfort with that interest amount which they gain it monthly. 5. it is same as the Sfdm scheme. 6. In simple words. SFDQ Sfdq ± short fixed deposit quarterly. If suppose they are depositing an amount of rupees one lacks means and if they are need of the interest amount from the deposited amount that is rupees one lacks on the monthly basis then they will be choosing this Sfdm scheme.4.

knows your customers. SAVINGS BANK ACCOUNT CURRENT ACCOUNT This savings bank account comes under the category of regular account. 4) ACCOUNT OPENING & OPERATING SECTION In this account opening section any number of people can open accounts in the bank. There are various different types of account prevailing in iob. Most of people choose this savings bank account. They can know about their customers easily and this is mainly useful for knowing about them (Nriµs) full details. Only a few people are going to this Nri deposit. When a person opens an account in the bank then he/she is becoming the customers of the bank. It can be an individual account or else a joint account. The interest rate given to this members belonging to . Here they will be paid up with a low rate of interest.Here. Kyc. They are:  Savings bank account (sb)  Current account (cc) TYPES OF ACCOUNT SAVINGS BANK ACCOUNT 1. Such type of Nri deposit is so rare now a day. In this Nri deposit they have a scheme that is called as ³kyc´. the person who is not an Indian but invested in India is called as an Nri deposit.

¶ Savings bank Account Induvidual Account Either or survivor Account Joint Account Let us see a brief description about all these accounts. This induvidual account will be a self account and it will be maintained personally. So that the members of this account can keep a low as well as a high balance in their account. Here. All the credit and debit entries of this account will be noted in the passbook which is issued to them. So that they can have any amount either it can be a lesser or higher amount.this account are 3.5%. In this savings bank account itself the people can either have¶ induvidual account¶ or an µeither or survivor account¶ or¶ joint account. there is no rule that they have to have the minimum and maximum amount. In this type of account only the person who is opening the account can only operate the account. a) INDUVIDUAL ACCOUNT A separate passbook will be provided with a photo of the person who is opening an account. . There is no ruling that to have only the required minimum or the maximum amount. It can be said as a personal account.

Thus whenever money is needed they are able to receive money at any cause. Thus both the people have equal rights to drop and receive money from there account. If suppose they want to drop money from their account then both of them must sign to receive money from their account. CURRENT ACCOUNT Current account is mainly opened for the purpose of business. The main important thing which we want to note is that both the persons must sign in here to receive the money from there account. c) EITHER OR SURVIER ACCOUNT In this account two or more people can join together and operates the account. Thus. But here two persons joint together and opens the account. either one of the person who is operating the account can receive money from there account. Any one of them can sign in this account and receive money. The important thing is that interest won¶t be given for this type of accounts.b) JOINT ACCOUNT This joint account is same as the induvidual account. Most of the business people open the account under current account.3. 1. For example:-³pvr builders´. 1. OVERALL STUDY OF ORGANIZATION: . Industries who all having account with the company name must have the account only with in the current account. They can deal only with the cheques. This account is right opposite to the joint account.

senior manager 2.sethu-cashier 4.Vanaja-cashier 5.vijayalakshmi-manager 3.ganeshan-clerk 7.vimala joesph-clerk 10.vijayabnu-clerk 8.Marimuthu-pune .usha-clerk 9.bharani kumar-cashier 6.People in the organization: 1.lakshminarasiman.

etc. 2. Measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace.1 STATEMENT OF THE PROBLEM: Customer satisfaction greatly affect the organization growth and development and there are several factors which effect the satisfaction level of an customer. OBJECTIVE OF THE STUDY The objective of the study is as follows the objective is to measure customers¶ perceived satisfaction with their experience of a firm¶s offerings  To assess the satisfaction level of customers in Indian overseas bank  To identify the factors which affects and improves the customer satisfaction level..  The researcher was carried out in a short span of time. facility. accessibility.  To offer valuable suggestion to improve the customer satisfaction level. The few factors which measures the satisfaction level of customers are service.3.CHAPTER II 2.2.  The study could not be generalized due to the fact that researcher adapted personal interview method. . where in the researcher could not widen the study. Hence 100% accuracy can¶t be assured. brand name. LIMITATION OF THE STUDY  The survey is subjected to the bias and prejudices of the respondents. 2.

debt financing." Work done by Parasuraman. Inc. This provides the measurer with a satisfaction "gap" which is objective and quantitative in nature. REVIEW OF LITERATURE: Definition: Customer satisfaction is defined as "the number of customers. American Customer Satisfaction Index (ACSI) is a scientific standard of customer satisfaction. sales. The customer is asked to evaluate each statement and in term of their perception and expectation of performance of the organization being measured. academic studies have shown that ACSI data is related to a firm's financial performance in terms of return on investment (ROI). its products. Two companies have been licensed to apply the methodology of the ACSI for both the private and public sector: CFI Group. the ACSI methodology can be applied to private sector companies and government agencies in order to improve loyalty and purchase intent. The ACSI measures customer satisfaction annually for more than 200 companies in 43 industries and 10 economic sectors. cash flow. . human capital performance. and an even stronger predictor of Personal Consumption Expenditure (PCE) growth. for example. and electronic mail. for the mobile phones sector.1. or its services (ratings) exceeds specified satisfaction goals. or percentage of total customers. and consumer spending. Academic research has shown that the national ACSI score is a strong predictor of Gross Domestic Product (GDP) growth. The usual measures of customer satisfaction involve a survey[6] with a set of statements using a Likert Technique or scale. ASCI scores have also been calculated by independent researchers. long-term firm value (Tobin's q). and Foresee Results apply the ACSI to websites and other online initiatives. On the microeconomic level. cash flow volatility. Zeithaml and Berry as two different measures (perception and expectation of performance) into a single measurement of performance according to expectation. whose reported experience with a firm. risk. In addition to quarterly reports.[12] Increasing ACSI scores has been shown to predict loyalty. portfolio returns. [13] [14] [15] higher education. Zeithaml and Berry (Leonard L)[5] between 1985 and 1988 provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance. Work done by Cronin and Taylor propose the "confirmation/disconfirmation" theory of combining the "gap" described by Parasuraman. word-of-mouth recommendations.CHAPTER-III 3. and purchase behavior. Their satisfaction is generally measured on a five-point scale.

. SERVQUAL or RATER is a service-quality framework that has been incorporated into customersatisfaction surveys (e. The Kano model offers some insight into the product attributes which are perceived to be important to customers. [17] ) to indicate the gap . Reverse.The Kano model is a theory of product development and customer satisfaction developed in the 1980s by Professor Noriaki Kano that classifies customer preferences into five categories: Attractive. POSE Analysis thus offers a competitive perspective to customer satisfaction. Indifferent. Instead of evaluating satisfaction with a proposition. POSE Analysis determines both the positioning and strength of a proposition. POSE Analysis [16] offers an alternative to customer satisfaction. the revised Norwegian Customer Satisfaction Barometer between customer expectations and experience. Must-Be. OneDimensional.g.

RESEARCH METHODOLOGY: Research methodology is the systematic way to solve the research problem.1.CHAPTER. 4. 4. 4. RESEARCH DESIGN: Descriptive type of research design is chosen for this research study.3. Questionnaire is the data collection instrument used in the study. multiple choice and dichotomous questions in order to get data. The researcher has used a structured questionnaire as a research instrument tool which consists of open ended questions.2. It gives an idea about various steps adopted by the researcher in a systematic manner with an objective to determine various manners.IV 4. All the questions in the questionnaire are organized in such a way that obtain all the relevant information that is needed for the study .1.4. Primary data is collected through personal interview. Thus. SAMPLING TECHNIQUE: The researcher has used Non-probability sampling in which convenience sampling is used. where the researcher and the respondent operate face to face and secondary data through the data and documents obtained from the organization. 4. SOURCE OF DATA: Most of the data collected by the researcher is primary data and secondary data. DETERMINATION OF SAMPLE SIZE: The study sample constitutes 10 respondents constituting in the research area.